Bitcoin Bounces Back as Post-Halving ‘Danger Zone’ Nears End

Bitcoin Bounces Back as Post-Halving ‘Danger Zone’ Nears End

Bitcoin News
May 13, 2024 by Diana Ambolis
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While the spotlight shines brightly on Tether’s regulatory woes, another story is unfolding in the Bitcoin (BTC) market. The recent price dip that coincided with the tail-end of the theorized post-halving “danger zone” appears to be nearing its conclusion. A Halving Hangover? In April 2024, Bitcoin underwent its third halving event, a pre-programmed feature that
Bitcoin

While the spotlight shines brightly on Tether’s regulatory woes, another story is unfolding in the Bitcoin (BTC) market. The recent price dip that coincided with the tail-end of the theorized post-halving “danger zone” appears to be nearing its conclusion.

A Halving Hangover?

In April 2024, Bitcoin underwent its third halving event, a pre-programmed feature that cuts the block reward for miners in half. Historically, this event has been followed by a period of price volatility.

Analysts like Rekt Capital predicted a potential price dip in the weeks following the halving, and their predictions seem to have held true. Bitcoin did experience a price decline, with some analysts referring to this window as the “danger zone.”

Danger Zone Dwindles

However, there’s some positive news for Bitcoin bulls. As of May 10th, 2024, the “danger zone” is predicted to be over within two days. This aligns with the analysis from Rekt Capital, who noted that Bitcoin’s price dip satisfied the theorized price targets for the danger zone.

Price Poised for a Breakout?

Interestingly, Bitcoin’s price has also shown signs of recovery in recent days. The price briefly dipped below $60,000 but has since managed to climb back up and retest that crucial support level.

This price action suggests that the worst of the post-halving correction might be behind us. Analysts like Material Indicators are even suggesting that large institutional players might be influencing the market, potentially to prevent a breakout over the weekend.

Also, read – Before Investing in Bitcoin Side Projects You Need To Use These 5 Cautions: Amazing Crypto Frontier

The Future of Bitcoin

While the immediate danger zone might be dissipating, the long-term outlook for Bitcoin remains uncertain. The success of the cryptocurrency will depend on a number of factors, including continued institutional adoption, regulatory clarity, and its ability to overcome scalability challenges.

However, the recent price recovery after the halving is a positive sign for Bitcoin bulls. As the “danger zone” fades away, all eyes will be on whether Bitcoin can maintain its momentum and embark on a new leg up.